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– Also gives some solutions to help prevent this from happening. liability protection. Blair. many of which have legal implications. Marcum & Eden S. however. – Due to a lack of time and knowledge.Introduction • Article written by Tanya M. – Entrepreneurs take the time to learn about and understand the implications of these decisions on long-term sustainability. . – Cost to compare and make decisions has an impact on three issues with legal implications. these entrepreneurs too often make quick decisions regarding important matters. and growth potential. – Entrepreneurs make numerous business decisions each day.

1. • The key to being a successful entrepreneur lies in making few mistakes.Entrepreneur as decision maker • Entrepreneur make multiple business decision such as the choice of business contracts. agreements. . founders. • The over simplification of decision can put the entrepreneur at risk. • The legal impact of decision on entrepreneur business is a fundamental startup phase. intellectual property and selection of advisors.

– Primary factors that entrepreneur is used to make is cost.2. No time to learn – Entrepreneur are not good as managerial and planning task but they are much good with creative task. – Entrepreneur will often utilize both time and expertise. because its involves numbers. . No time to think.

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Three immediate legal issues impacted by short-term decisions I. Intellectual Property .3. Founders agreements and other contracts III. Business Entity Information II.

2.3.Founders’ agreements and other contracts ― Founders agreements are one of the most important long-term contacts.Intellectual Property ― Entrepreneurs should save (IP) rights from the competition.Three immediate legal issues impacted by short-term decisions (cont’d) • 3.3. ― Founders agreements are less expensive and less time consuming. – A single entrepreneur may choose to do business as a sole proprietorship. ( trade mark. • 3.Business entity Information – Selection of the most appropriate business entity for a particular ventures is a important and complex decision. ― IP includes two main categories: » » registered. copyright) Unregistered • . 3.1. ― An arbitration clause would allow for any potential disputes over the contracts.

[Khandekar & Young] ― Managing the legal process of entrepreneurship is of higher importance to the entrepreneur then owners/managers of own firms. and can struggle with facts and analysis. » Under-reliance on professionals » Over-reliance on one advisor .4. ― Entrepreneurs are often described as dreamers. A Team-based approach to professional advice ― Decision that must be made in order to minimize risks and maximize goals and profits.

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consultants. and other professional advisors are not utilized as well as they could be by entrepreneur.1.4. . Under-reliance on professionals ― Team based approach is important. lawyers.1. ― It is critical that an entrepreneur understand all advantages and disadvantages of each decision. Over-reliance on one Advisor ― Over-reliance on one professional may result in an entrepreneur making decisions based on a single major factor. 4. ― The cost of advice is higher then the cost of no advice. accountants.

» » » » Get advisors early Budget/Raise Capital Team Approach Concluding by reflecting . • Educating themselves regarding the strategic and legal ramification of decisions . • Seeking advices from professionals can save time and future cost. What should Entrepreneurs do? • Entrepreneur should have the basic understanding of these legal issues.5.

Budget/Raise Capital – Entrepreneur's venture is unique thus its financial forecast will also be unique. family and business associations .3. allowing to make knowledgeable and well-rounded decisions. . – It will maximize the benefits and reduce the legal risks. – Entrepreneur's often try to bootstrap their ventures by findings creative ways to keep cost down. Get advisors early – Professional can serve as wonderful allies to the entrepreneur by identifying and explaining potential benefits and risk associated with business. Team Approach – Relaying on one advisors often limit the world view of the venture. – A consulting team helps seek advise from individuals with different areas of expertise.1. • 5.2. • 5.• 5. – Entrepreneur should utilize their networks of friends.

How might an entrepreneur reflect? – They can educate themselves . Concluding by Reflecting • Reflection involves careful consideration with a better understanding of the consequences of different decision.5. • The question is. sites including professional organizations . .4. internet has a wealth information from reliable. which are most the free. – Workshops – Panel Discussion – Classes – 30-60 time each day to reflect on impending decisions.